Light Industrial Auto
New
For Sale
$2,950,000
15201 Mercantile Dr, Dearborn, MI 48120
Zoned Light Industrial with an established automotive-oriented layout.
Property Size27,711 SF
Price / SF$106.46
Days on Market2
Property Features for 15201 Mercantile Dr
General Information
Standard status
Active
Size
27,711 SF
Property subtype
Commercial
Zoning
Light Industrial
Taxes and HOA fees
Annual Taxes
$33,541
Building Details
Building Size
27,711 SF
Year Built
1986
Buildings
1
Listing Agency:
Keller Williams Legacy
Listed By:
Nick Jaafar · License #403947
(313) 228-3777
Source:
Elliman
Added: Sep 18
Last Checked: Sep 19 at 10:49AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Keller Williams Legacy
Investment Insights
Based on property information with market context.
This 27,711-square-foot automotive facility was built in 1986 and offers a functional configuration for operations, service bays, storage, and related industrial activity. The property has an established automotive history and was formerly associated with Dinolab and Continental.
Located at 15201 Mercantile Dr in Dearborn, the site carries a Walk Score of 92 and a Bike Score of 53. Light Industrial zoning and the existing facility layout align with automotive and industrial applications described for the property.
Located at 15201 Mercantile Dr in Dearborn, the site carries a Walk Score of 92 and a Bike Score of 53. Light Industrial zoning and the existing facility layout align with automotive and industrial applications described for the property.
Key Highlights
- 27,711 SF automotive facility
- Light Industrial zoning
- Built in 1986
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$162,617
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.51%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,252,340
$3.3M
Cap Rate 7%
$2,323,100
$2.3M
Cap Rate 9%
$1,806,856
$1.8M
Market Conditions
NOI Build-Up for 27,711 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$242.7K $8.76/SF
− Vacancy
−$10.4K −$0.38/SF
EGI
$232.3K $8.38/SF
− OpEx
−$69.7K −$2.51/SF
NOI
$162.6K $5.87/SF
Area
Dearborn, MI
Vacancy
4.30%
Lease Rate
$8.76 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,252,340
Cap Rate 7%
$2,323,100
Cap Rate 9%
$1,806,856
Alternative Uses
Best Use
Retail
$4.88M
$4.27M – $5.69M
NOI $341,314 @ 7.0% cap · market cap 11.57%
Second Best
Industrial
$2.32M
$2.03M – $2.71M
NOI $162,617 @ 7.0% cap · market cap 5.51%
Theoretical Best
Office A
$6.11M
$5.35M – $7.13M
NOI $427,921 @ 7.0% cap · market cap 14.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
710
Businesses Nearby
128k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 54%
Shops & Services 29%
Dining 16%
Electronics 1%
Kroger
Groceries
69,327 visits/mo
0.5 miles
7-Eleven
Shops & Services
15,304 visits/mo
0.3 miles
The UPS Store
Shops & Services
14,386 visits/mo
0.3 miles
Tim Hortons
Dining
8,828 visits/mo
0.1 miles
Wendy's
Dining
8,807 visits/mo
0.1 miles
Demographics for 48120, MI
8,338
Population
2,910
Households
2.9
Avg Household Size
29
Median Age
37%
College-Educated
76%
High-School Grad
4.7 sq mi
ZIP Area
1,774
Density / Sq Mi
$66,667
Median Household Income
$48,170
Median Earnings
$1,407
Median Rent
$236,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Auto shop - Zoned Light Industrial with an established automotive-oriented layout.
Where is this auto shop located?
The property is located at 15201 Mercantile Dr Dearborn, MI.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: 27,711 SF automotive facility; Light Industrial zoning; Built in 1986
